5 ways to improve your Accounts Payable department
Have you considered how your accounts payable department could be improved and made more efficient? If your business isn’t currently utilizing technology such as AP automation, you’re leaving a major opportunity for improvement and increased efficiency on the table.
There are many different options when it comes to improving your AP department, and in this guide, we’re going to walk through a few “quick wins” and provide you with some tips you can implement into your accounts payable process today.
How to export invoice data to your accounting system in minutes
We’re on a mission to make the business world a better place. To achieve this, we built Rossum – an AI-powered accounts payable (AP) automation solution that enables AP experts to take on more productive and fulfilling roles in their companies.
Invoice processing automation
As more companies transition to remote work due to changing business practices, automating invoice processing and accounts payable, or AP, can help businesses keep their operations running smoothly. Backend teams may access their workflows in a single, cloud-based platform at any time and from anywhere with an automated accounts payable system.
In a manual accounts payable process where data is saved in-office computers, AP teams working away from the office are unable to keep track of paper-based invoice information. Traditional invoice data extraction and processing require long hours and tedious routine processes. This can slow down invoice approval and may even result in strained customer relationships when payments are delayed or missed.
By manually entering invoice information into the company’s ERP system, a paper-intensive AP process might result in clerical invoicing errors. Additionally, there is a higher risk of losing invoices, which might result in multiple payments. Paper-based processes also mean that businesses spend a large amount of money on document printing, filing, and storage. Accounts payable automation can also help detect and reduce fraud risk.
E-invoicing can help eliminate issues with invoice accuracy, which can negatively impact a company’s cash flow. AP teams can check invoice statuses more efficiently, manage the end-to-end invoicing process, and pay customers and suppliers accurately and on time by using automated invoice processing software.
The benefits of invoice processing automation cannot be undermined. For example, by streamlining AP operations, the ratio of days payable outstanding — or the average number of days it takes for firms to pay back their accounts payable — can be improved.
One way to enhance your AP efficiency is to examine your invoice data capture method. AP teams spend a substantial amount of time extracting and entering invoice data into accounting systems when using a manual invoice data capture system. By doing manual, repetitive tasks, AP teams are unable to focus on higher value-added activities to enhance business productivity and increase competitiveness.
Using AI-powered optical character recognition, or OCR, technology for extracting invoice data such as Rossum, can bring time and cost-saving benefits for businesses. Rossum’s AI-powered OCR system extracts invoice data using artificial intelligence. This is particularly helpful for companies that deal with a lot of invoices in different formats. An automated data extraction solution such as Rossum uses smart technologies for fast and highly accurate invoice data gathering.
Invoice processing software
Using invoice processing software can assist businesses in automating their end-to-end invoice processing and payment operations. Accounts payable teams can avoid the inconvenience of doing manual, clerical tasks by using automated invoice processing software. This frees them up to focus on higher-value activities, such as risk mitigation, developing solid business relationships, spending analysis, and others.
Invoicing software for small businesses can help firms automate their invoicing process, minimize invoicing errors, and ensure timely and consistent payment collection. By using the best invoice processing software, companies can reduce their processing costs and save a huge amount of money per transaction. Organizations may optimize their cash flow and protect their profitability by implementing accounts payable automation.
It is important to note, however, that not all automated invoice processing solutions are built the same way. Some automated invoice processing tools do not have intelligent document processing capabilities. For instance, a template-based OCR software uses a templated approach to automation. In addition, a traditional OCR has issues in handling non-standard invoice formats and document layouts.
Rossum is an intelligent document processing platform that uses artificial intelligence to understand complex structured documents. By utilizing advanced machine learning technology, Rossum’s AI-based OCR software learns how to capture important data and recognize patterns in multiple document formats over time. This means that there is no need to create a new template for each new document layout.
What is invoice automation? Invoice automation is the process of automating the entire invoice-to-pay reconciliation. This includes capturing invoice data and entering it into a company’s ERP or accounts payable systems.
A manual invoice processing environment requires multiple steps for managing vendor or supplier invoices. In addition, processing a single invoice from receipt to payment takes a lot longer compared to an automated solution.
A template-based invoice data capture has a higher total cost of ownership, or TCO, than an AI-based cognitive data capture, such as Rossum. TCO refers to the estimated cost structure of an asset, including operational expenses, throughout its entire lifecycle.
A traditional OCR solution requires rules and templates to capture important data. To boost scan reliability, a template-based OCR may require users to manually examine the quality of the original document. This is because minor inconsistencies or errors might render an invoice invalid. A template-based OCR may be useful for invoices with the same standard format.
An AI-based OCR does not only capture invoice information but can also process data more thoroughly for any type of document layout. AI tools may also check for errors without the need for human participation, thereby assisting with fault management.
Rossum is a cognitive, cloud-based OCR platform powered by artificial intelligence. AI technology can replicate the way a human brain detects and captures document data, resulting in higher accuracy in data capture.
Accounts Payable software
Manual invoicing is a time-consuming and error-prone procedure that may negatively impact a company’s profitability. Paper-intensive invoicing can cause inefficiencies by causing invoices to bounce between departments, which prolongs the payment process.
In a manual process, accounts payable teams spend too much time performing routine tasks that can be simplified through automation. By streamlining their workflows, AP teams can dedicate their valuable time to higher value-added activities.
Your accounts payable workflow can be considerably improved by using a cloud-based vendor invoice management system. Invoice processing automation can help your business save time and money. Using accounts payable software enables you to manage large amounts of invoice data in various formats. In addition, automating your invoice process workflow may allow you to save up to 80 percent in yearly invoice processing costs.
Using https://rossum.ai/blog/why-cloud-invoicing-is-important/ allows companies to keep track of invoice statuses at any time and from anywhere using any connected device. Aside from improving cash flow collection, automating the accounts payable process can help companies reduce the risk of payment fraud.
Here are some benefits of automating your accounts payable software:
- Create digital processes – Repetitive and error-prone tasks related to accounts payable, such as receiving invoices and entering invoice information, can be streamlined by adopting a digital workflow.
- Perform automated matching – Accounts payable automation software provides for two-way or three-way matching, which involves comparing the invoice amount and information to the purchase order and the receipt of the goods.
- Manage supplier relationships – By assuring timely and accurate payments, AP teams may enhance relationships with suppliers and customers.
By automating invoicing procedures, Rossum can help businesses turn their accounts payable into a profit center. Rossum’s AI software includes computer vision technology that enables automatic data extraction and integration with existing and widely-used business software tools. By using Rossum’s software, enterprises may redirect 90 percent of the labor resources previously dedicated to data entry to more essential tasks.
Invoice management software
Companies can use invoice management software to manage and track their invoices and client information. Using a cloud-based invoice management app for tracking payments and doing online product inventory can help businesses enhance their AP processes swiftly and securely. While manual processing of a single invoice takes approximately three minutes to complete, automated invoice processing can be drastically reduced to 30 seconds per invoice transaction.
Some invoice management system features that can bring benefits to businesses include automatic data capture, remote access to invoice information, and email notifications for payment and invoice approval.
A simple invoice software solution may rely on a template-based OCR. Unlike an AI-based OCR such as Rossum, which does not require specific rules or template setup, a traditional, template-based OCR may require frequent manual intervention for creating new templates when handling invoices with different forms and layouts.
Invoice processing solutions
There are various types of invoice processing solutions, depending on your business demands and requirements. Knowing how to automate invoice processing in Excel, for example, could be advantageous for small businesses that only handle a small number of invoices.
One of the advantages of spreadsheets is that they make it simple to create and track invoices. Furthermore, unlike commercial software that demands a little cost, Microsoft Excel and Google Sheets are both free to use. Finally, users can automate their Excel spreadsheets to perform simple activities like filling in blanks and formatting new data.
However, as businesses scale their operations, it may be beneficial to upgrade to a more formal platform with more advanced capabilities, such as Rossum. Rossum’s intuitive, invoice data processing solution leverages computer vision technology for faster and more accurate invoice data capture. Rossum’s AI-based OCR works on any invoice layout. This saves businesses the time and effort of having to create new templates for different invoice forms.
Automated invoice processing benefits
Automated invoice processing brings time- and cost-savings benefits to businesses. While it is possible to generate an invoice from Excel data, this semi-automatic process may be prone to error, since it still requires manual data entry. In addition, tracking invoices with Excel spreadsheets may pose security issues. Unauthorized users can easily break into computer systems to access invoice information stored on computer systems or Google Drive.
In general, the majority of business data comes in unstructured formats, such as text data, PDF documents, email attachments, and invoices. An Intelligent Document Processing (IDP) solution can transform unstructured and semi-structured data into structured and usable information.
An IDP solution such as Rossum can automate business processes, particularly when it comes to handling large volumes of business documents. An AI-based platform enables businesses to process invoices in less time than it would to process documents manually or set up rules and templates using a traditional OCR solution. A cloud-based IDP platform such as Rossum can help companies minimize their manual processes and shift to a digital-based workflow for greater efficiency.